Numbers dressed up in fancy suits pretending to be words.
The estimated value of an asset at the end of its useful life, before you actually try to sell it and discover it's worth much less. Also called residual value by optimists who think depreciation schedules reflect reality.
A company's total value including debt and excluding cash, representing what you'd pay to own it outright and settle all obligations. It's market cap's more sophisticated cousin that actually understands capital structure.
An accounting entry recognizing that an asset is now worth less than its book value, forcing companies to admit their expensive acquisition was actually terrible. It's the corporate version of finding out your vintage comic book collection is worthless.
Deferred acquisition payments contingent on the target company hitting future performance metrics, bridging valuation gaps between optimistic sellers and skeptical buyers. It's 'prove it and we'll pay more.'
An economic system where the means of production are privately owned and operated for profit, creating a delightful paradox where the invisible hand of the market somehow manages to be both magical and occasionally prone to slapping people in the face. It's the reason your coffee costs $7 and someone had to invent the term 'disruption.' Love it or hate it, it's what's paying for your avocado toast.
Legal arrangements where one party holds property or assets for the benefit of another, creating a three-way relationship between the person who created it, the trustee managing it, and the beneficiary enjoying it. It's how wealthy families keep money in the family while minimizing taxes and preventing irresponsible heirs from blowing their inheritance on crypto. Also refers to the confidence you probably shouldn't have in said arrangements.
The predetermined order in which cash flows are distributed among different classes of investors, with senior investors getting paid before junior ones. It's like a literal waterfall—money flows down until each tier is satisfied.
The assumption that a company will continue operating for the foreseeable future rather than liquidating, which underpins how financial statements are prepared. When auditors question this assumption, update your résumé.
A journal entry made at the corporate level above the normal operational accounting system, often used for adjustments or consolidation. It's headquarters overriding local books, sometimes legitimately, sometimes suspiciously.
Government money injected into the economy during crises, based on the economic theory that the best way to fix problems is to print cash and hope for the best. It's designed to stimulate spending and growth, though recipients often prefer to save it or pay down debt, completely missing the point. Politicians love stimulus packages because they get to look generous with other people's money while economists argue about whether it actually works.
Money that flies out of your wallet or company coffers, usually faster than you can track it, for goods, services, or operational necessities. In business, these are the costs of keeping the lights on and the wheels turning. In legal contexts, it's often what you're trying to recover after someone else's mistake cost you dearly.
A trader who believes that staring at price charts and drawing lines on graphs can predict the future, also known as a technical analyst. They're basically financial astrologers with better software.
Shares that a company has issued and later repurchased, sitting in corporate limbo—not quite cancelled but no longer outstanding. The equity equivalent of taking back your gift because the recipient didn't appreciate it enough.
Reserves that companies stash away during good times to smooth out earnings during bad quarters, like a financial rainy day fund that violates accounting principles. It's earnings management dressed up in respectable terminology.
The difference between the present value of cash inflows and outflows over time, discounted because a dollar today is worth more than a dollar tomorrow—thank you, inflation and opportunity cost. If it's positive, invest; if negative, run away.
The auditing equivalent of a failing grade, where auditors formally declare that financial statements are materially misstated and unreliable. It's the corporate kiss of death that sends investors running for the exits.
The annual fee expressed as a percentage that mutual funds and ETFs charge for the privilege of managing your money. It seems small until you realize how much that 1% compounds against you over decades.
Financial contracts obligating parties to buy or sell assets at predetermined future dates and prices, essentially allowing traders to bet on tomorrow's commodity prices today. These derivatives let farmers hedge against price drops and speculators gamble on market movements without ever touching an actual bushel of wheat. The futures market adds liquidity and price discovery to markets while giving financial news anchors something to dramatically discuss at market close.
Money given before it's technically due, whether as a loan, a payment against future earnings, or corporate optimism in physical form. It's the financial equivalent of borrowing from tomorrow, often appearing in employee expense scenarios or publishing deals. Not to be confused with romantic advances, though both can lead to awkward HR conversations.
French for 'slice,' because everything sounds fancier in French, especially when you're dividing up debt into pieces. In finance, it's a portion of a larger pool of securities, bonds, or loans, each with different risk levels and maturity dates. Investment bankers use this term to make selling chopped-up mortgages sound sophisticated—we all remember how that worked out in 2008.
Latin for 'equal footing,' meaning creditors or securities rank equally in priority for payment. If the ship sinks, you all go down together—very democratic, if not particularly comforting.
A day trader or stockbroker who buys and sells the same stock within a single trading session, pocketing quick profits faster than you can say "capital gains tax." Named for the rapid flip, not the aquatic mammal, though both are equally slippery.
Breaking down financial results by business unit, geography, or product line to show which parts of the company are actually making money. It's where corporate winners and losers get exposed despite management's attempts at averaging.
The prices charged between subsidiaries of the same multinational corporation for goods or services, theoretically based on arm's-length principles but conveniently used to shift profits to low-tax jurisdictions. Tax authorities are not amused.